A Spotlight On Intact Financial Corporation’s (TSE:IFC) Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Intact Financial Corporation (TSE:IFC) due to its excellent fundamentals in more than one area. IFC is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Intact Financial here.

Established dividend payer with adequate balance sheet

With a debt-to-equity ratio of 28%, IFC’s debt level is acceptable. This implies that IFC has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. IFC appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

TSX:IFC Historical Debt January 30th 19

For those seeking income streams from their portfolio, IFC is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.

TSX:IFC Historical Dividend Yield January 30th 19

Next Steps:

For Intact Financial, I’ve compiled three important aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for IFC’s future growth? Take a look at our free research report of analyst consensus for IFC’s outlook.

2. Historical Performance: What has IFC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.